CANADA FX DEBT-C$ sideswiped by weak Canadian jobs data

 * C$ skids to lowest level in a week

 * Canada sheds 44,500 jobs in July

 * Bond prices lower across curve
 (Recasts)

 TORONTO, Aug 7 (Reuters) - Canada's dollar was pinned lower
versus the greenback on Friday morning as weak Canadian jobs
data soured investor risk appetite and pulled the currency to
its lowest level in a week.

 The slide in the currency followed a report that showed the
Canadian economy shed 44,500 jobs in July, nearly three times
the consensus forecast. [ID:nN07253705]

 "Obviously we had a bit of data from Canada today, it was
quite disappointing and I'm not surprised to see the Canadian
dollar a bit weaker," said Steve Butler, director of foreign
exchange trading at Scotia Capital.

 The Canadian dollar fell as low as C$1.0865 to the U.S.
dollar, or 92.04 U.S. cents, its lowest level since July 30,
from C$1.0785 to the U.S. dollar, or 92.72 U.S. cents, shortly
before the numbers came out.

 The currency briefly recouped all those losses as investors
moved back into riskier assets after U.S. jobs data showed
employers cut fewer jobs in July than expected and the lowest
number in any month since last August. [ID:nN06337602]

 But the rebound was short-lived as the U.S. dollar began to
react positively to supportive U.S. economic data after months
of falling in the wake of favorable reports that only served to
lessen its safe-haven appeal.

 "We're going to have to take a step back today and decide
whether or not good news and better data is going to start to
mean better days for the U.S. dollar," Butler said.

 "At some point that's got to change back to the way it was
and the way it should be; good news and data in the U.S. should
be good for the U.S. dollar and good news in Canada should be
good news for the Canadian dollar."

 At 9:35 a.m. (1335 GMT), the Canadian unit was at C$1.0797
to the U.S. dollar, or 92.62 U.S. cents, down from C$1.0767 to
the U.S. dollar, or 92.88 U.S. cents, at Thursday's close.

 Some Canadian data, such as retail and home sales, have
shown the economy is healing, and the Bank of Canada and most
private-sector economists say the economy will start to grow in
the third quarter. The central bank projects 1.3 percent growth
in the July-September period after three quarters of
contraction.

 BOND PRICES ALL LOWER

 Canadian bond prices fell across the curve alongside the
bigger U.S. Treasury market in the wake of the nonfarm payrolls
report that hinted that the labor market in the United States
is less impaired than previously thought.

 The two-year Canadian bond was down 1 Canadian cent at
C$99.07 to yield 1.461 percent, while the 10-year bond slipped
35 Canadian cents to C$101.30 to yield 3.591 percent.

 The 30-year bond dropped 75 Canadian cents to C$115.50 to
yield 4.064 percent. In the United States, the 30-year Treasury
yielded 4.614 percent.
 (Editing by Peter Galloway)